CLASSICAL FRY GLEBE LTD

Executive Summary

CLASSICAL FRY GLEBE LTD is currently experiencing financial stress, shown by negative net assets and working capital deficits, signaling liquidity challenges. While the company operates on a micro scale, immediate focus on cash flow management and capital injection is essential to stabilize and improve financial health. Timely intervention can restore a healthier financial position and support sustainable operations.

CLASSICAL FRY GLEBE LTD - Analysis Report

Company Number: 13645968

Analysis Date: 2025-07-20 13:51 UTC

Financial Health Assessment for CLASSICAL FRY GLEBE LTD (as of 30 September 2024)

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress with net liabilities and negative shareholders' funds. The absence of audit and the micro-entity reporting regime indicate a very small scale operation, but the current financial position shows weakness that requires attention to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	2,976	Limited liquid resources; very small cash or receivables.
Current Liabilities	3,802	Short-term obligations slightly exceed current assets.
Net Current Assets	-826	Negative working capital; indicates potential liquidity issues.
Net Assets (Total Equity)	-826	Company has net liabilities; shareholder funds are negative.
Number of Employees	2	Very small workforce, typical of micro-entity status.
Audit Status	Exempted	No audit conducted; financials unaudited but compliant with micro-entity rules.

Interpretation of Vital Signs:
The company’s negative net current assets and net liabilities are symptoms of financial distress akin to a patient showing low vital signs like weak pulse or low blood pressure. The business may be struggling to cover its short-term debts with available liquid assets, which could lead to liquidity problems if not addressed.

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3. Diagnosis

CLASSICAL FRY GLEBE LTD is a micro-entity operating in the take-away food sector with very limited resources and scale. The company's balance sheet reveals net liabilities of £826, indicating that its liabilities exceed its assets, a symptom of financial strain. This contrasts with previous years (2021-2023), where net assets were positive but minimal (£100), suggesting a recent decline in financial health.

Underlying issues include:

• Liquidity stress: Current liabilities exceed current assets, indicating the company may face challenges meeting short-term obligations.
• Negative equity: Net liabilities suggest the company’s value is below zero, which can erode owner confidence and affect supplier or lender relationships.
• Small scale operation: With only two employees and micro-entity status, capacity for scaling or absorbing shocks is limited.
• No audit: While standard for micro-entities, unaudited accounts may obscure underlying risks not clearly visible.

This financial profile is similar to a patient with mild but concerning symptoms—while not yet critical, intervention is needed to improve health and avoid further deterioration.

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4. Recommendations

To improve financial wellness and restore a healthy balance sheet, management should consider the following steps:

• Improve cash flow management: Tighten credit control, speed up receivables collection, and carefully manage payables to ensure the company can meet short-term debts.
• Increase working capital: Inject additional capital or secure short-term financing to restore positive net current assets and liquidity buffers.
• Cost control: Review operating expenses and employee costs to reduce cash burn while maintaining essential operations.
• Explore revenue growth: Given the take-away food sector, consider marketing initiatives, menu diversification, or delivery partnerships to increase sales.
• Regular financial monitoring: Establish monthly cash flow forecasts and management accounts to detect symptoms early and act swiftly.
• Consider professional advice: Engage with an accountant or financial advisor for detailed cash flow planning, tax advice, and potential restructuring options.
• Maintain compliance: Keep filing accounts and confirmation statements on time to avoid penalties and maintain good standing.

Addressing the current symptoms with these actions can help the company recover from its current financial strain and build a stronger, healthier financial position.

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